We have partnered with The Family Business Podcast, hosted by Russ Haworth, to help providing family businesses with tips and guidance on key family business questions.
Russ says "When I started the podcast I had no real expectations beyond trying to put out insightful information to family businesses from experts around the world. I would love to hear from you with suggestions for future episode and I look forward to bringing you the next 100!"
In this episode he reflects on the previous 99 episodes and summarises his thoughts on important issues such as:
- The need for coherent advice
- Succession does not mean success
The 10 domains of family wealth
On this weeks show Russ is joined by Dr Jim Grubman. They are discussing the Ten Domains of Family Wealth. This is a piece of thought leadership from The Ultra High Net Worth Institute that looks at all of the various domains that families with wealth need to focus on and highlights to advisers that their roles have changed.
If you want to find out more about The UHNW Institute you can visit their site here: www.uhnwinstitute.org
If you want to learn more about Jim and his work you can visit: www.jamesgrubman.com
Trusts and their uses
Trusts can be a fantastic way to specify how our assets are used and how our wishes are carried out beyond our lifetimes. They can be used to pass down wealth between generations including the family business.
However, there are a number of things to be aware of and considered before setting a trust up and in this episode Russ is joined by Matt Braithwaite from Wedlake Bell as they discuss Trusts and their uses.
We cover :
- What they are
- What roles accompany the trust
- Who should be your trustees
- Their interaction with other legal arrangements you may have made
- How to get started
You can find out more about Matt here: https://wedlakebell.com/people/matthew-braithwaite/
a SUCCESSION story with jeremy manford
This weeks show is an interview with Jeremy Manford. Jeremy is the CEO of his family business, Compu-Stor based in Australia. In this interview you'll hear Jeremy's experiences of joining the business, succeeding his father and how he and his brother have recently clarified their roles to make best use of their resources.
You'll also hear about the value that Jeremy and his family have found in being members of Family Business Australia and how valuable having peers you can discuss challenges with is. Something that Russ will specifically be speaking about in the 8 February episode, available here.
how and when to start succession planning
Succession Planning is a complex process, there are many moving parts to it and lots to consider. This can put a lot of people off starting the process or leaving them not knowing how or when to start. In this episode Russ shares some tips on how to get started.
1 - Start Early
2 - Separate out the different elements of succession
3 - Look at the role of Family Governance
4 - Keep an open mind
5 - Have open and honest conversations
He also covers when to get started and without wanting to ruin the surprise, the answer is now!
the sellers journey
One third of businesses that go to market to sell actually conclude successfully. This episode looks at some of the common emotional barriers to these transactions and what we can do to help avoid them.
If you are a professional adviser to family business owners this is a must listen episode as Denise shares her experience of helping sellers to overcome these barriers.
We look at the emotional aspects of selling or passing your business on to the next generation and ask the question:
What does work provide for you?
As a business owner no-one prepares you for letting go of your business, the role you play in it and the emotional wellbeing that it provides
should you gift your FAMILY BUSINESS?
Should you gift your family business to the next generation?
Should you leave the business to your children in your will?
Or, should the next generation be asked to buy the family business at full market value?
When do you start the discussions about these topics and how do you avoid them becoming argumentative and potentially damaging to your family?
We cover this and a whole lot more in this thought provoking episode of the podcast.
You can find out more about Tom and his book at: www.everyfamilysbusiness.com
life outside the family business
Debbie Ekins has recently decided to pursue a career away from her family business. This wasn't an easy decision or one that she made quickly.
In this episode Russ talks to Debbie about her experience, the emotional rollercoaster she experienced whilst deciding what she wanted to do and how she told her parents that she didn't want to take over the family business.
Debbie shares her story and there are a huge number of lessons that can be taken from it.
what is a family investment company?
Sometimes the right thing to do with a family owned business is to sell it. If that liquidity event provides sufficient wealth and financial independence for the owners of that business, they may want to look at ways of passing that wealth on to future generations in a tax efficient way that also allows them to retain control over those assets.
One vehicle for doing this is a Family Investment Company. This episode explore these businesses with Helen Clarke from Law firm Irwin Mitchell, looking at what circumstances these can be suitable and the process to go through to set one up, how a FIC can help retain control of assets, educate the next generation and become a generational planning tool. It also looks at some of the 'what-ifs' and pitfalls to avoid along with covering the importance of family governance and robust legal structures.
barriers to SUCCESSION
Succession Planning is complex and whilst there are financial and technical complexities there are also emotional complexities that can get in the way of succession planning. In this episode Russ explores those and looks at some of the common issues he comes across in his work.
succession planning considerations
In this episode Russ is joined by Mike Kane from Turcan Connell. Mike is a corporate lawyer and works with family businesses to help them with their succession planning.
In this chat they cover what considerations you might want to think over before starting the process of succession planning. They cover the aspects of an MBO, a dynastic succession and alternatives such as full sale and a sale to an employee owned trust.
'Lifeboat drill' for your family business
As we emerge from this global pandemic now might be a useful time to review how things are set up and if that matches everyone's expectations. An actual lifeboat drill is essentially a practice evacuation of a ship using the lifeboats on board. Russ am not advocating everyone rushing out and practising evacuations, however it is the purpose of a lifeboat drill that is important here.
The reason that lifeboat drills are important for sailors is that if and when they need to use the lifeboats they want the reassurance of knowing that:
- The lifeboat does the job it is there to do; and
- If anything does go wrong that it is not at a time of emergency and you can do something about it.
A lifeboat drill for your family business is essentially looking at a number of 'what if' scenarios that allow you to test that the legal, financial and business procedures you have in place are fit for purpose.
covid-19 update from the ifb
The IFB's Fiona Graham join Russ again to provide further insights into the work that she and the Institute for Family Business are doing on behalf of family businesses here in the UK.
They look at:
The impact that COVID has had and some of the innovation that has been seen from the UK's family businesses.
What policies the IFB are lobbying Government about, specifically linked to COVID and away from COVID.
Some of the key findings from the 2020 State of the Nation report including an increase in female leadership amongst family businesses.
The fact that family businesses tend not to access all of the support that is available and the impact that may be having on their finances and attitudes to taking on debt.
The importance of applying for Research and Development credits
Find TEDx resources here:
You can read the State of the Nation report here:
There is additional COVID-19 guidance for family businesses here
THE ARBIKIE DISTILLERY STORY
Arbikie Estate is a family-owned working farm in Scotland. This episode looks at the innovative and collaborative way that this family have been creating new products, including a carbon positive gin and vodka product. We hear about the history of the family and how the current owners returned to the business having initially pursued careers away from it. Iain Stirling describes how the collaboration happened and what others can learn from the opportunities that exist. We also discuss the impact of COVID and Brexit on the business and how they are approaching their working operations as a result.
family offices and covid-19
Bobby Stover is America's Family Office Leader at EY. He joins the show this week to discuss the challenges that the COVID-19 pandemic has presented to family offices and how these are being tackled.
We look at how some are adapting in different ways to others.
What will the coming months and years mean for how family offices operate?
How are different generations dealing with the current situation?
Alongside these challenges we also discuss how best we can keep staff within a family office engaged as well as family members who may have already been struggling with feeling an attachment to the family office.
What different ways can be explored to help with communication at a time when we are working more remotely.
how to be up in down times
We have spoken already on the show about the importance of looking after our wellbeing during the current COVID pandemic, and this is something that my guest this week feels very passionately about.
Friend of the show, Mitzi Perdue joins Russ on this episode to talk about some of the tips she and her co-authors have shared in their book - How to be Up in Down Times.
We hear about the importance of self-care, the subjects to avoid talking about and negative impacts of stress.
We also have a surprise phone in moment from Mark Victor Hansen himself!
Mitzi also shares her passion for the fight against human trafficking and how we can all get involved in this fight.
successful transitions in a family business
On this episode Russ is joined by Dr. Jim Grubman who is an internationally recognised consultant, speaker, and educator in the multidisciplinary field of family wealth psychology. He works with affluent families and their advisors to understand how wealth and life can be integrated successfully.
On this episode we cover many different topics. We look at how different generations have reacted to recent events and experiences.
We explore the role of governance and discuss what 'good governance' looks like and what it does for families in business.
We explore the 'resilience' and what that really means during this current crisis.
Many families are finding out what areas they have done well in and where they need to learn when it comes to both governance and succession (or transition) planning.
We also look at the important role that advisers play in working with families during these transitions and the elements that make up the 'Generative Alliance' that can help family businesses to thrive.
You can find out more about Jim here: www.jamesgrubman.com
ENGaging the next generation
On this weeks show Russ is joined by Guillermo Salazar as they discuss what family businesses can be doing to help prepare their next generation given that we are living in turbulent times.
They look at the different types of mindset that people are adopting during the COVID-19 pandemic and how this impacts your family business.
In addition Guillermo talks us through a case study of a family that he has worked with to help them prepare their next generation to be owners of the business.
About Guillermo Salazar
Expert on corporate governance, and the strategic planning of succession and family patrimony. He has served as advisor for numerous business families on their protocols, generational transition, alignment of family vision and values for decision-making, and conflict resolution. Author of the books “Family Businesses: Tools for the Management of Love and Money” and “Handbook for the Family Business”. Lecturer and educator in the field of the family business in Latin America. Fellow member of the Family Firm Institute (FFI) in Boston, USA. Recipient in 2015 of the International Achievement Award of the Family Firm Institute.
Re-inventing the family business after the pandemic
For over 40 years, Dennis has been one of the leading architects of the field of family enterprise consulting. As both an organisational consultant and clinical psychologist, he helps multi-generational families to develop governance practices that build the capability of next generation leadership and ensure ongoing capability of financial organisations and family offices to serve their family clients.
We draw on Dennis' expertise and experience in this episode to look at how you re-invent your family business after the pandemic.
We look at what other family businesses have done through previous crises and in particular those that Dennis has studied for his book 'Borrowed from your Grandchildren'. This looks at family businesses that have survived for more than 100 years and explores the common characteristics of these firms.
In a wide ranging conversation we cover:
- What families can be doing now
- Reviewing why you are in business together
- The roles each generation can play
- How to build resilience
You can find out more about Dennis and his work by heading to www.dennisjaffe.com
As we emerge from this crisis there is an opportunity to ensure continued success for your family business. Choosing the right strategy will be the difference between doing this in a way that is aligned to your values as a family, and coming across in a genuine way, compared to appearing as tone deaf and icky.
Jeremy Miller is a the Founder of Sticky Branding a branding and strategy agency based in Toronto, Canada.
Jeremy works with family businesses to help them to grow their brands. He used these techniques to grow his own family business before deciding to sell the business to focus on what he was passionate about.
In this episode we discuss branding, strategy and give practical and real examples of businesses who are positioning themselves to thrive in an 'After-COVID' world.
We also discuss succession and the role that the next generation can play in the future strategy of the business.
You can find out more about Jeremy here: www.stickybranding.com
We are living in unprecedented times where we are fearful for our families health, that of our own and the prospects for our businesses. It can be easy to become overwhelmed by the situation, so in this episode Russ offers some reasons to be hopeful.
Many businesses now are aware of and accessing the support available to them from Government and have started to look at what they need to do within their businesses and within the environment they find themselves in.
In this episode Russ discuss some of the reasons he is hopeful and optimistic and shares some tips on how to spend any additional time that you may have as a result of the Government guidance to stay home and save lives.
In this episode Russ talks to Managing Director of Family Business Norway, Simone Møkster, Director General of the Institute for Family Business Elizabeth Bagger, 4th generation family business member and founder of the IFB, Alex Scott and John Learmonth who has written studies how family businesses reacted to the Second World War and were able to come out of the crisis stronger.
Whilst there are many differences between the two historical events of WWII and Coronavirus, there are some key characteristics that family companies showed during WWII, which we can learn from today:
- Human Assets
- Getting organised
You can find John Learmonth's article "FIC Crisis Management and Survival – nine practical takeaways from family business war stories" here.
USING MINDFULNESS TO LIVE WELL DURING CORONAVIRUS
With Corona Virus impacting more and more businesses and people around World, Russ follows up the last episode with an interview with Martin Stepek.
Martin is a mindfulness coach and also a family business expert and so can offer unique insights into how to use mindfulness at times of extreme stress.
Martin's own family business went into administration in the early 2000's and he found that during that extremely difficult time he was able to use his mindfulness practice to help him through.
You can find out more about Martin at the following sites:
SUPPORT FOR FAMILY BUSINESS DURING CORONAVIRUS
Corona Virus is having a huge impact on the lives of us all. It is a scary time when we are fearful for our families health and well-being and our businesses.
Family businesses across the world will be trying to balance all of the conflicting priorities that exist and will need support to do so.
In this episode Russ offers guidance as to where to get advice, where to get support and some tips on remote working and remaining positive during this exceptionally difficult time.
The resources mentioned in the episode are as follows:
You can email Fiona: Fiona.Graham@ifb.org.uk
THE IMPORTANCE OF A GOOD WEBSITE
Your website is your shop window for the world. It is likely to be the first experience your customers have of your brand. Given its importance Russ chats to family business Jammy Digital about what your website should include.
Martyn and Lindsay are a husband and wife team who run their own web design agency. In this episode Russ chats with them about the areas you will want to focus on with your websites and importantly what not to do as well.
THE STORY OF AUTOMATION NINJAS
Kenda and Mike Macdonald own and run Automation Ninjas, a marketing automation business.
Their journey into ownership wasn't a straight forward one but they have created an award winning business that creates amazing customer journeys using buyer psychology and marketing automation.
In this showcase episode we discuss why your business may also benefit from understanding more about how your customers think.
creATing value through governance
Russ is joined on this episode by Daniel Trimarchi as they discuss a recent article from a collaboration between KPMG Private Enterprise and The STEP Project Global Consortium looks at how to create value through Governance.
Empowering the future of family business – a four part article series on some of the key topics impacting business families including succession, women in family business, governance and legacy - Empowering the future of family business - KPMG Global (home.kpmg). Global family business report to be released March 18th titled ‘Mastering a comeback: How family businesses are triumphing over COVID-19’ - Global Family Business Report - KPMG Global (home.kpmg)
They discuss the following:
- What is Governance?
- What do we mean by 'value'?
- In what ways the benefits of good governance outweigh the negatives of implementing good governance.
a family business story
Russ is joined by Dominic Rubino, a business coach who has historically owned and worked in a family business.
This episode looks at what we can learn from Dom's experience of working in a relatively informal business and governance structure with his cousin; how money can be destructive and what happens when you experience rapid growth in the early stages of the business; and at the need for governance and 'professionalisation' and the impact on businesses of not having this in place.
How does all that we've explored in this series tie together? And how can you create family business culture that reflects the value of your family?
In this episode we look at Corporate Governance and in particular the Wates Principles.
The Wates Principles are a set of Corporate Governance principles that some large businesses need to report against. In this episode Russ discusses these principles and how they can be adapted and adopted by your Family Business.
He also looks at some of the legal structures that can be put in place to protect the shareholders in the business should disputes arise or deadlocks appear in your voting.
You can find the Wates Principles here.
The appointment of a Non-Executive Director is a key milestone in the evolution and professionalisation of a family business. They bring experience, expertise and an independent voice to your board meetings and they are there to challenge the executive directors, in a constructive way to help you push the business towards its strategic goals. In this episode Russ covers who would be a good fit and who you should perhaps avoid and which characteristics and skills you would want them to bring to the party.
THE FAMILY BUSINESS BOARD
As a family business grows, the need for the right forums to be in place to discuss the important strategic goals of the business becomes increasingly important. Once such forum is the Board of Directors.
In this episode Russ discusses when you would want to introduce a board to the family business, and how. Who sits on the board, what are their responsibilities? How many board members should there be and how are board meetings structured.
WHAT IS A FAMILY ASSEMBLY?
Continuing our look at Family Governance, in this episode Russ discusses the Family Assembly, or retreat/meeting: what they are, who attends and what subjects are covered, along with some hints and tips as to how to get your own family meetings up and running.
We also look at the interaction between a family assembly, a family council and the family charter and provide a reminder of the key benefits of family governance.
THE FAMILY COUNCIL
Family Councils create a bridge between the business family and the family business board. In this episode Russ explains what a Family Council is, what roles and responsibilities it has and how you would typically elect its members.
Russ also covers the important role of the Chair, the skills they are likely to need and the way in which the Family Council interacts with the business and the family.
WHAT IS A FAMILY CHARTER?
The Family Charter is the cornerstone or foundation document of a family governance system. It is the bedrock on which everything else is built.
It is also known as a Family Constitution or agreement. It is the main document that the family use to outline their values and vision for the family business.
Whilst rare they are gaining recognition and being adopted by many families. In this episode Russ explores why they are useful and how to get started with your own.
WHAT IS GOVERNANCE?
What is family business governance? Why is it useful? What are some of the common barriers to putting governance in place? Where can you start from?
An update from Russ Haworth at the Family Business Podcast on what's coming next in 2020.
On this episode Russ is joined by Peter Vogel. Peter is Professor of Family Business and Entrepreneurship, Director of the Global Family Business Centre at IMD Business School in Switzerland and the co-author of the book The Family Philanthropy Navigator.
They discuss how philanthropy has evolved throughout history and look at the latest trends in this fascinating area. They talk about how you as a family would decide on the types of philanthropic activity you want to pursue and where to start when looking to begin your giving journey.
To explore more about strategic philanthropy in family business, access our free guide here.
In this episode our very own Richard Hearn (IFB Membership Director) is in conversation with Russ and Daniel White, Assistant Director of the Kansas Family Business Forum. They discuss what benefits associations such as the IFB and the KFBF bring to family businesses. So if you've been considering whether to join our community, this episode is for you.
the 5 rights of ownership
Josh Baron and Rob Lachenauer from Banyan Global discuss the 5 rights of ownership and much more from their book Harvard Business Review - Family Business Handbook. Josh and Rob describe these rights as being:
1 The Right to Design
2 The Right to make decisions
3 The Right to Value
4 The Right to Inform
5 The Right to Transfer
In this engaging and really enjoyable chat Josh and Rob share their thoughts on what these rights mean for you. You can find out more about Josh and Rob here: https://banyan.global/